DeVry BUSN 427 Final Exam

Click on the link below for the solution:

http://devryfinalexams.com/products/busn-427-final-exam/

1.

Question :
Student Answer:

(TCO 1) What organization was protested in Seattle in 1999?

Boeing Corporation
Starbucks
World Trade Organization
APEC (Asia Pacific Economic Corporation)

2.

Question :

Student Answer:

(TCO 2) According to Francis Fukuyama, the collapse of

communism in eastern Europe was followed by which of the
following?
The new world order
The end of history
The universalization of Western democracy
None of the above
All of the above

3.

Question :

Student Answer:

(TCO 3) Which language is most widely spoken throughout

the world?
Chinese
Hindi
English
Spanish
None of the above

4.

Question :

Student Answer:

(TCO 3) Which theory deals with competitive advantage for

countries?
Herckscher-Ohlin
Adam Smiths Wealth of Nations
Product Life-Cycle Theory
The Leontief Paradox
None of the above

5.

Question :
Student Answer:

(TCO 4) In the last 30 years, the world economy has seen

a marked increase in both the flow and stock of FDI.
a slowing of FDI overall.
FDI grow but more slowly than world trade.
a shift away from free-market economies.

6.

Question :

Student Answer:

(TCO 5) Chile is included in which of the following regional

integrations organizations?
MERCCOSUR
Andean Community
NAFTA
APEC
None of the above

7.

Question :
Student Answer:

(TCO 6) When a firm engages in hedging it is

ensuring against a risk in the foreign exchange.
violating a law on foreign speculations.
in danger of violating the Foreign Corrupt Practices Act.
investing in a hedge fund to maximize its return to
shareholders.

1.

Question :

(TCO 8) What are the three staffing policies available to a

multinational corporation?

2.

Question :

(TCO 8) In distribution strategy, what are the four main

differences between countries?

3.

Question :

(TCO 3) Indias caste system has been around for many years.
Explain why its influence has diminished among educated
urban middle class Indians.

4.

Question :

(TCO 3) In 2006, two Chinese journalists reported that the

working conditions at Hongfujin Precision Industries where
Apples iPods are produced were substandard. According to
the report, not only were workers at the plant poorly paid, but
they were also forced to work overtime. Apple immediately
responded to the allegations and audited the factory in
question. However, managers at the factory filed a defamation

lawsuit against the two journalists. Despite the fact that

Apples audit did indeed show substandard working
conditions at the factory, Hongfujin did not withdraw the
lawsuit. Eventually the Reporters Without Borders group took
up the case for the two reporters and the lawsuit was dropped.
The allegations against Hongfujin Precision Industries were
made by two Chinese reporters. Discuss the implications of
this for other Chinese companies.

5.

Question :

(TCO 3) Exports are largely responsible for Chinas recent

rapid economic growth. The country, capitalizing on its cheap
labor force, has focused on converting raw materials into
products that are exported to developed countries such as the
United States. In 2008, Chinas trade surplus was a record
$280 billion, and its holdings of foreign exchange reserves
were over $1.95 trillion. Some critics have suggested that
China is following a neomercantilist policy.
Are the claims that China is following a neomercantilist policy
valid? Why or why not?

6.

Question :

(TCO 4) Telefonica is a Spanish telecommunications firm. For

decades, Telefonica had operated as a typical state-owned
enterprise, but privatization and deregulation changed that
path in the 1990s. Telefonica began to aggressively pursue

expansion opportunities in Latin America where it quickly

became the number one or two player in nearly every country.
Later, Telefonica turned its sights on Europe where its
acquisitions helped transform the company into the second
biggest mobile phone operator in the world.
What changes in political and economic environment allowed
Telefoncia to start expanding globally? Why did Telefonica
initially focus on Latin America? Why was it slower to expand
in Europe even though Spain is a member of the European
Union?

7.

Question :

Student Answer:

1.

Question :

(TCO 7) Why did the world shift from a gold standard to fixed
exchange rates?
Gold is expensive to ship around the world.
A more convenient means of financing world trade was
needed.
The volume of world trade increased.
All of the above

(TCO 5) Concerning European Unions progress toward

creating a single financial market, the quest started in 1999
was to have been completed by 2005, however, progress has
been slowed by various factors related to the tradition of each
member country operating autonomously. By 2007, significant
progress had been made. Some 41 measures designed to create
a single market were in place and others were in the pipeline.
The current issue facing the EU revolves around the
enforcement of the rules that have been established as law.

Some experts believe that it will be at least another decade

before the benefits of the new rules become apparent.
Discussion of this feature can begin with the following
questions.
What are the benefits of creating a single financial market in
the European Union for companies? Does it make sense for
consumers?

2.

Question :

(TCO 6) In the 1980s, Caterpillar was negatively affected by a

strong dollar and lost significant market share to Japanese
competitor Komatsu. The situation prompted Caterpillar to
revise its global strategy and by the 2000s, the company was
in a much better position to deal with volatile currency values.
More recently, a strong dollar has actually helped boost
Caterpillars bottom line.
In the 1980s, a stronger dollar hurt Caterpillars competitive
position, but in 2008 a stronger dollar did not seem to have the
same effect. What had changed?

3.

Question :

(TCO 7) In May 2001, the IMF agreed to lend $8 billion to

Turkey to help stabilize its economy and halt a sharp slide in
the value of its currency. Although initially the Turkish
government resisted IMF mandates on economic policy, in

2003 the government passed an austerity budget. By 2005,

significant progress had been made and today, the country
appears to be on track for recovery, with lower inflation rates,
an increase in privatization, and a budget surplus.
What led to Turkeys financial crisis? What goals did the IMF
establish as part of the loan agreement?

4.

Question :

(TCO 8) MD International is an export intermediary for U.S.

medical equipment manufacturers. The company has been able
to capitalize on falling trade barriers, as well as expand
healthcare programs in the Latin American region. MD
International currently represents more than 30 companies and
sells to some 600 regional distributors.
How does an intermediary such as MD International create
value for the manufacturers who use it to sell medical
equipment in foreign markets? Why do they want to use MD
International rather than export directly themselves?

5.

Question :

(TCO 8) Boeing made the decision to outsource much of the

production of the 787 in the hopes of significantly reducing
the time to get the product to market. Boeing also anticipated
that its outsourcing strategy would allow it to generate
additional sales from the countries that were partners in the
process and reduce its costs and risks. Although Boeings
strategy worked for some components, for other parts the

strategy was a disaster. Suppliers were late and some produced

poor-quality parts, forcing Boeing to commit additional
resources to the project.
What are the benefits to Boeing of outsourcing so much work
on the 787 to foreign suppliers? What are the potential risks?
Do the benefits outweigh the risks?

6.

Question :

(TCO 8) By 2015, Ford hopes to compete in North America,

Europe, and Asia by offering several global models including
the Fiesta, the Fusion, and the Mondeo. The company, which
refers to its new strategy as One Ford, anticipates that its
global models will share the same components and looks and
be positioned in a similar way in each market in which they
are sold.
What is behind Fords One Ford vision? What is the company
hoping to accomplish with this strategy?

DeVry BUSN 427 Final Exam

Click on the link below for the solution:

http://devryfinalexams.com/products/busn-427-final-exam/